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tv   FOX Business After the Bell  FOX Business  March 12, 2013 4:00pm-5:00pm EDT

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12 points off of the dow. preventing what could very well be a six record win for cat. that is a great company, what are you going to do? david: we have somebody coming up wit who says caterpillar is a screaming buy right now, so maybe this is the time to buy it. we may not get the six days of gains. liz: still about two minutes to go. merck leading the dow on the other side of this. nicole: that is right. an independent board looking at it, they will continue the trials they found so far continuing into 2014. the dow today hit new record intraday high. david: i wonder what makes you feel like when rumors of her demise sends your stock going up. that is what happened to jcpenny's because the ceo might be leaving.
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nicole: and then a spokesperson for the company came out and flat out denied that and called it false but the stock was jumping big-time. it would be better if we said something like jcpenney sales are so great. liz: we have dick's sporting goods, but it has cut the radio show. nicole: they are not really a takeover target so golde goldma. they had too much cold weather gear, and it was a little bit more mild and goldman sachs says once the weather issue passes, i think they will recover same-store sales, so positive on dick's. david: all the banking stocks had a rough day. morgan stanley, others down. nicole: the riskier plays per out of favor.
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liz: let's just listen to that one. might it be another record? david: looks like it. liz: we still have to let it settle but it looks like the dow jones industrials moving higher today. it is in the green, david. david: for a moment, it is settling a little lower. who knows, let's look at the indices. liz: s&p 500 couldn't quite pull up over. the s&p down three, the nasdaq down 10, the rustle down about two points, so read on the screen but the dow a fraction higher. david: on the other hand, the volatility index up again. when the market is up, it is down, woul when the market is d,
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it is up. we have not seen 11 for a long time. anything less than 13 is extremely low. liz: defense stocks shaking off sequestration cuts worries today. these are record highs, united technologies making blackhawk helicopters, all-time highs. and look at maker of cabin interior parts. those are also hitting new highs. david: let's switch to oil, because it rose for the fourth straight session, even holding its own after-hours but it did come down as you can see they're sort of midday. it was up over $1.50 at one point, but this is the highest settle since february 27.
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liz: kinnects, and to make her of lincoln logs, remanufacturing back home from china and white could give him a competitive advantage against the bigger toy guys. david: are you noticing the prices easing up, but we have a money manager coming up who says if you invest like there is inflation, you will lose. he joins with our anti-inflation stock plays. liz: first, what drove the market with today's data download. it is another record high, all-time high. the sixth straight session of record highs for the dow jones industrials, the longest since 1998. the eighth straight day of gains for the s&p, and looking at the
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nasdaq closing in the red, and the s&p couldn't quite make it. technology led the decline. looking at gold, ending the session higher for the fourth straight day briefly touching $1600 per ounce. the highest close since february 27. the longest win streak in six months. many contributed today's games for simple short coverings. the national independent of business and small business confidence index rose 1.9% despite the federation rating on business conditions remain deeply in recession territory and business owners reported declining sales far outnumber. david: we're going to get into details now. at the picks of the cme and our market panel. chief investment officer and
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multimedia trust associate portfolio manager. larry, i want to start with you, who is very difficult to find any direction for the market today, what was moving it? >> it was more news at home or lack thereof. people are very anxious right now. it is like holiday where people don't know what to do. we have lived through this crisis mentality for a long time, traders are waiting for the next shoe to drop, whatever that might happen to be. we are all very, very anxious. liz: there is anxiety, but decent data that continues to repel the market. so there i that is reality of positivity. >> definitely. the concern is macro is failing to impress us. the something else to pick up the baton. liz: we have six record high close is.
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>> exactly, but i am saying we need another metric to go beyond where we are right now, that is why we're seeing the lack of liquidity. we are not seen a whole lot of the volume. something else has to pick up at the time, i'm hoping it'll be growth metrics within the u.s. proving we are near a staple in the u.s. economy. david: what about banks? they will be reporting capital returns, might that be what you're looking for a? >> it could be. one reason things have rallied so much, we have seen the spreads righ widened. you take those into consideration i think it is a great tailwind for 2013. liz: you saw the dollar strengthened a little bit. i am not sure that has as much to do with what is going on, but gold this year is up. >> you look at all of the
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commodities, that all rallied a little bit. love that was goldman sachs revisiting their commentary for 2013 just giving a lot of short covering and lots of boost to macro traders who want to get on board or cut the exposure. david: we will see you in a couple of minutes. thanks, larry. liz: let's bring in our market panel. gentlemen, let's start, the market just on an incredible run. there he was saying we have to see something else. impress me more. do you agree, is that what we need now? >> i am pretty impressed. how much more impressed can you be? we have to remember the way investors show up as we have something about yesterday's market movement from yesterday's market prices that inffuences prices about tomorrow. i think the trend from here will
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be up for quite a while. david: we just heard from the cme trader another metric to move the market significantly one way or the other. even if it is a negative metric, you don't see much of a pullback, do you? >> i think we have got very favorable environment brought to you by the federal reserve and other monetary authorities and i think you can see this in the deal market. companies doing deals, being done with the market applauding them by going up, find television stations, they are going up. companies buying casinos. they are going up. companies doing creative financial engineering, turn themselves into wreaths. they are going up. all thi of this happens becausef
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low interest rates. second thing, corporations are helping themselves. they are doing a much, much better job allocating capital and you take a look at companies doing just a terrific job, directv, gap, home depot, ibm, the list goes on and on. companies basically distributing all the free cash flow to shareholders after they have done great spending. the post child would not do in this market is apple. capital allocation. the majority of companies and corporations are getting it right, the federal reserve is helping. it is a great environment and people are slowly flake the godfather three trying to stay out, but they get pulled back in. liz: i just saw a stat today saying hedge fund involvement moved up to the highest level it has seen in eight months so maybe the so-called smart money with a little behind.
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how do you pick a stock? in this atmosphere with a lot of crosscurrents coming around, what do you look for when you pick a name? >> investors should think in general a budgeting risk across their portfolio. it is not necessarily look at anyone named but the risk characteristics of how that fits into the overall portfolio. a risk factor i would consider today because of the movement in the market is momentum. we just saw $50 billion of equity mutual fund purchases for the first time in a while, and investors are going to move the market's outlook of securities that have trie positive price t. a security with negative price momentum would be apple, but you might think about classes of risk. there was a mention of real estate, one of the things we're looking at is commercial real estate globally. the movement in public real estate has been pretty broad,
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and i think there is a trend going on that will continue for a while. as we see the economy pick up, people spending different areas of the world starting to ratchet up a little bit, real estate globally would be an important theme for investors as well. liz: jampacked with this kind of thing. >> there is a lot going on around the world, trends in the real estate market and the fact is commercial real estate is still very much under owned by individual investors. david: i don't mean to pick on apple, i am an apple shareholder so i am a little worried about it, but you talk about capital allocation, lots of rumors about how apple might allocate some of the $137 billion as they may borrow against it take advantage of the low interest rates to allocate that capital and therefore get a bonus with low interest rates.
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is that something that would encourage stock holders about apple or discourage you? >> they have got to do something, that is precisely what i recommended, and the reason is a lot of that cash is part offshore and very impressivexpensiveto replace it. david: so you do recommend they borrow against the 137 early in dollars? >> yeah, yeah. it would cost 2% and make it 2% return on their stock so that it 18 points to play with, that is an enormous spread. i don't understand. david: what do they do with that world money? >> they borrow the stock -- buy the stock. liz: macy's hit a new high once again, so thank you for those picks, we appreciate it. david: thank you very much. good to see you both.
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liz: house republicans just released a budget they say results in a $7 billion surplus in 2023? the white house says this math does not add up. david: while democrats say the planned cuts too much, some say doesn't cut at all and it enshrines the levels of spending and does nothing to cut the size of the size and scope of government. we will ask former presidential advisor coming next. what does she think? [ male announcer ] at his current pace,
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customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. david: 30 seconds ago the s&p futures closed, let's go back to larry at the pit for the cme. any indication what will happen tomorrow? >> the indication is we will have probably more of the same. i think people will keep their hands in their pockets until we see the direction.
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a very close attention, not too far away. april the eighth, kicked off the earnings season. people are taking some to be safe. david: seems like we just ended the earnings season. good to see you, my friend, thank you very much. liz: we have to look at shares of diamond foods. let's get to nicole on the floor of the new york stock exchange. what is going on? nicole: you can think of emerald nuts. also pop secret popcorn, kettle chips. they came out with their quarterly number with a good profit. -@second-quarter profit. expectations slightly lower, but their numbers missed the analyst estimates, they're not sales have been to the downside while they made it through the scandal, they have these other issues like operating expenses they face. plus getting enough wal-mart wa.
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when you miss the analyst estimates that is what you see the down arrow. back to you. liz: thank you nicole, very much. david: house republicans with their own proposal today but people in both sides of the aisle. liz: the plan could create a budget surplus? we send it to rich edson on capitol hill. rich: you have to think about the budget releases and negotiations, starting points they laid out today. senate democrats do so tomorrow. first let's get to ryan, cutting $4.6 trillion in government spending over the next decade living to $7 billion surplus in 2023, though it does assume january tax increase does stay in place and repeals the president's health care law, but not the $700 billion in medicare cuts as part of it.
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getting some help from democratic proposal proposal toe the budget. senate democrats plan on cutting $1.85 trillion in deficit reduction and about a trillion of that will be cuts, a trillion of the new tax increases on the wealthy and closing tax loopholes. in this pat overhauls medicare and medicaid. the bill also spends $100 billion on infrastructure and job training. as for democrats and republicans, neither budget is gaining much traction with either party. david: $827. liz: if you don't like the way we are proposing to balance the budget, how do you propose we balance the budget? will be continued to be complacent with never balancing the budget? >> house republicans are moving further from the compromise. house republicans are passing the ryan republican budget that is even more extreme than the propaganda we have seen in the
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past. rich: one missing piece of this, to be a couple of months late, april 8 says the white house, the week when the president will release his budget. meeting tomorrow and the day after. back to you. david: rich edson talking money inside the beltway. paul ryan's budget plan getting slammed for democrats to say it cuts too much but average of $4.1 trillion per year in federal spending. that is the ryan's budget, which is a big increase. a woman who is biased many presidents. on whether the ryan budget doesn't go far enough. liz: we have a money manager with the stock to grab right now if you think like he does inflation isn't going to be an issue for a while. stay tuned. you need the list.
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david: house budget committee chairman paul ryan unveiling his budget proposal today aiming to balance the budget in 10 years without tax hikes but does the ryan budget make president obama's increasing the size size and scope of government permanent? joining us, senior fellow and former u.s. department of labor chief economist. great to see you again, diana. democrats don't like the ryan budget because it cuts too much, but in point it doesn't cut, it just cuts the rate of increase.
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he says it is laughable ryan's tenure, $41 trillion budget will return government to the proper limits and focus. ryan merely talking about reductions in planned increases in federal spending. so it's ryan's budget just kind of accepting this 20% increase in the size of the budget that we have seen since president obama came to office? >> ryan's budget has to start from where we are right now and it increases spending at a 3.5% rate every year instead of a 5% rate. if it were me, i would cut far more. it was paul ryan, he would probably cut far more, but the budget has to get through congress and it is very difficult to get any kind of cuts. if paul ryan manages to get his budget through congress and to have the cuts he has laid out, to be a miracle code would be historic. so yes, it increases the size of government and it increases its
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less than it would be otherwise and in washington it is unfortunate is very difficult to cut. david: budget are all high in the sky, what is real is the spending the treasury department has to come up with, the actual amount that is spent and when we look at that from 2008 up until present, we see this huge increase in the first year 2009 was a result of the stimulus but then that level just stay there. 20% increase in the federal budget represents the new concept of government, which is a 20% increase by president obama. president reagan actually decreased the sizes of domestic spending, why doesn't the ryan budget tried to do the same? >> probably because ryan doesn't think it is politically possible to get fat through the democrat controlled senate. one reason is entitlements have become so high. what we need to do is ratchet them down as they become a safety net instead of a
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middle-class entitlement. look at unemployment insurance. now it is up around 99 weeks, it's about 75, same for food stamps. middle-class americans now qualify for food stamps. medicare much higher spending. and paul ryan has tried to decrease these amounts. but there is a lot further you can do, for example, the $12 billion we spend on energy programs every year that makes our electricity more expensive. david: you are talking about windmills. >> windmills, solar, 50 billion on high-speed rail when only 2% of americans ride high-speed rail. david: frankly don't have time for all of the examples. most of our viewers know government waste a lot of money, but i'm just wondering if the ryan plan gives room to more views like rand paul. might we see a new budget come
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out with somebody who really believes in cutting like rand paul? >> we will see a budget from the committee generally has smaller government spending, lower government spending and the house budget committee. if you did i'm told this year it will also come out next week, they do things like illuminates the corporation for corporate broadcasting, but if paul ryan can get the budget through congress, to be historic, it would make a dent. david: i want to get into the real economy, let's stop talking about the economy inside the beltway. we now see a budget committee tighter and more lenient than it has ever been in my lifetime ever in my lifetime with all the cost-cutting that has gone on. a lot of the jobs eliminated were part of that, but are you surprised with a slow economy and with a tight business course the market is just booming.
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a small one, but another record. >> is booming because of the federal reserve pumping out money into the economy two weeks late. david: lets me push back a little bit on that because as i said, businesses have tightened their belts tremendously and they are now clean as can be. doesn't a lot of the credit of what is happening in the market go to the businesses themselves? >> some of it does go to the businesses holding a lot offshore about 1.7 trillion, the question is why gdp growth is still so slow and unemployment still so high given the stock market. that is because of the federal reserve and because of the large amounts of money that multinationals are holding offshore, we need corporate tax reforms to bring that back into the united states because corporate tax rate 35% well above the average of 24% and we tax company on the worldwide
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income rather than just domestic income. that needs to change so some of the corporate profits come back into the united states. david: diana furchtgott-roth, great to see you. thank you for coming in. liz: chocolate company bringing jobs back to the u.s. bringing jobs over from china as it tries to reach an impressive goal to produce 10 100% made in america toys. telling us why producing here in america is good for business and what challenges he has been facing. and up next, a money manager who says inflation is a joke at the moment, he tells us why and the stock picks that could take advantage of the laughable atmosphere that he calls so funny. don't forget to log onto facebook.com/afterthebell and tell us if you are concerned about inflation at least in the near future. stay tuned, we are coming right back. ♪
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ashley: time for a quick speed read first up conde nast is publishing web s.e.e.r.ries. the branded consent to available on -- content is available on youtube today. lamborghini sales rose
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30% year-over-year in 2012. the supercar sales rose by 34% in europe and 50% in the americas. the u.s. treasury is increased its sale of gm shares the government raised over $489 million for the automakers shares in february. taxpayers still own about 277 million shares of gm. late snowfall is causing transportation delays in europe. frankfurt airport was forced to close, canceling 355 flights n france the army was ordered to clear roads. the irs reporting that h&r block improperly filed over 600,000 tax returns. the error could delay refunds up to six weeks. ouch. that is today's speed read [buzzer] liz: you have irs employees might be on furlough due to sequestration. david: that's right. liz: the $85 billion a month of money printing by our federal reserve or buying certain assets, right, has some worried inflation is getting set to rear its ugly
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head as the economy perhaps start to improve. david: we have someone who says worries over upcoming inflation are a joke. he has ways to play this low inflation environment. randy warren, chief investment officer at warren financial services. it is not a joke for folks counting their pennies to have to pay extra money for the bus, subways and tolls. there are things that go up that do hurt. however companies can not afford to raise prices too much in this environment, particularly manufacturers. and that's what you're talking about, explain. >> exactly. there is kind of a tug-of-war going on between inflation and the stork market and people are worried about that and is it too high and inflation and the economy and people are worried about that. companies are not able to raise their prices too much. david: there is not enough demand. >> there is not enough demand. there is a lot of good opportunities to buy some of these companies. commodity prices come down for restaurants, things like wendy's buffalo wild wings,
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mack crone -- macaroni grill. liz: this is extraordinarily important when it comes to lack of inflation. you don't see the pressure by employees to say, pay me nor more. you can't get that. not a lot of price hikes but yesterday we talking about hertz and avis raising prices but people are paying it but in the aggregate pressure not too high. >> unemployment needs to be down to 6% before you get any kind of wage pressure. liz: wendy's first. why wendy's? i assume they're a low commodity price play? >> they're doing a great job. they are hitting america where they live and commericals were rebranded and stock price is up and input prices are down. most of the commodities that go into the products are actually on the lower end this year. david: that is true for up buffalo wild wings and chipolte as well. >> exactly. david: moving to manufacturers, if manufacturers were producing at 100% capacity we would
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see inflation no question about it with all the money the fed -- but they're not, they're only manufacturing 79% right now. >> right. david: and that means what? >> that means they have no pricing power. they can't increase the price whatever they're building whether cars or airplanes or caterpillar tractors, whatever it is. david: if that is true, why is cat piller and bowing a pick for you? >> they have the opportunity for the economy to expand to go up. you want to pick the industrials early. now is a good time to pick industrials. they are out of favor in the recent past and coming into favor in the future. liz: caterpillar was the biggest point decliner today. so that really sliced off what more gains we could have seen with the dow jones industrials. you say a pullback of 1.25% is buying opportunity? >> definitely a buying opportunity for caterpillar, boeing or cummins engine. i like all three of those. david: when do you think inflation does play a role in this economy? >> it is definitely going to play a role when
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unemployment start to drop. what you have to worry about is not the stock market too high. you don't have to worry about that you have to worry about is inflation and economy too high. you have a tug-of-war between the two items. david: we do have the tremendous. amount of cash the fed is pumping out. most banks have been holding it because they haven't been lending it out. there hasn't been a lot of demand for borrowing. once this money begins to churn through the economy, then, is it going to be katy-bar-the-door? or is the fed going to be able to control inflation? >> what you described is called the velocity of money. essentially the money is sitting on the bank balance sheets and the fed has a new method they introduced last couple years to control how much money is lent out. david: which is? >> the ability to pay banks to keep reserves at the federal reserve banks. which is new. this did not happen in the future, in the past. david: a lot of people like alan blinder an wayne angell are against the policy because they think it prohibits or at least suspends for the moment the
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ability of banks to lend money out because they get paid by the fed. >> it will tamp down lending. that is what you want when things get too hot. not now. we don't have inflation now. in the future when things get too hot, when the economy is roaring you need a tool like ttat. liz: randy warren. david: thank you. one of his picks is boeing. we have breaking news on boeing airline. the faa approved the 787 certification plan. what does that mean? it means boeing is able to test the 787. you see the stock moving slightly higher in the ask. at least. they're able to test the 787 battery fixes. he will not allow 77s to back to service until he is satisfied about the planes. randy, while we still have you, is this -- >> you have tin years of r&d coming to fruition. they're able to sell these things for revenue and profit. ten years of development finally coming to fruition.
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david: are you buying more boeing tomorrow? >> definitely. david: randy, great to see you. thank you very much. >> thank you very much. david: toy company is bringing manufacturing back from china and making toys right here in america. coming up next the ceo joins us next in a first on fox business interview to tell us why this could give him an advantage over the bigger toy players who are manufacturing overseas. liz: that robot is not a toy. it is helping them save money. ♪
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>> i'm sandra smith with your fox business brief. a chase spokesperson telling fox business its website is experiencing intermittent issues and they are working to resolve the issue issue keeping customers updated about i via twitter and their website.
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chase declined to specifically comment what caused problem a cybersecurity source confirmed to fbn that a new round of cyber attacks has we he boo gun. a investigation into four consumer credit reports that were fraudulently accessed through the site. equifax said they had personal information on certain individuals which allowed them to bypass authentication. >> the longest winning streak since fib of 1998. and that is the latest from the fox business network, giving you the power to prosper. i'm a conservative inve. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find outhy nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes
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investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. theengineered with aeel-drive unique drive system and dual transmission. all-wheel traction. all-wheel power. all done. only from husqvarna. challenge the impossible. liz: made in the usa, not something we hear alot especially in all places the toy industry where many toys sold in the u.s. are produced overseas but one toy-maker, k'nex, has been bringing most of its manufacturing to the u.s. most of the big guys like
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hasbro and mattel are not doing. in a first on fox business interview, k'nex ceo and president. michael, specifically first, how many jobs have you brought back and why here in the u.s.? >> sure, liz. it is good to be with you. why here in the u.s., i will get to that first, it became clear to us three or four years ago american consumers were looking for things made in the usa. we wanted to be able to do that. we want to strengthen our own company and community by bringing production back and then we knew if we did that we also created jobs. as ceo and business owner part of my responsibility is to my people, my community and my country. because of that reason we said if we bring all these production back, we'll have more jobs. how many jobs --. liz: you're a businessman though, right? in the end if it is more financially responsible for your company to do something overseas then you would do it. what is it about having things done here in the u.s. that really makes it smarter?
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>> sure. well, liz, i'm a patriotic capitalist is what i am. so, yes, we have to have a profit motive and we have to be able to make a profit but we're able to figure out when you unbreak the entire supply chain and look at total supply chain cost there is china handicap of somewhere between 15 to 30% depending on industry, say these parts i'm looking at we made in our factory in the united states might look like 5% or 10% cheaper in china. once you factor in shipping, double management and extra labor over there, those savings are quickly eaten up, especially when one of your big markets is here. if one of your biggest markets in north america, speed to market is huge advantage for manufacturers. liz: there you go, the speed. i want to get to that. >> sure. liz: the big boys, if hasbro comes up with an idea, we have them on the show, great company, but they come up with an idea, we know how fickle children are and one minute they want this and next is angry birds they can't turn on a dime to get it made and ship all the way acros overseas versus what
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you guys can do, right? >> part of the reason hasbro picked us to do tinker toys, for the first time in five decades was exactly that season. christmas season, october, september, back to school and we're able to reload the shelves exactly what you said, we're making stuff on demand in the factory. our turnaround time is matter of weeks as opposed to matter of months coming from overseas. liz: we're showing angry birds. let's talk about that. >> sure. liz: that is one area you have to keep it in china, for example, the head of these angry bird toys, because of rubberized coating that made better in china? >> not about better. more touches. so you touched on this labor is their advantage. injection molding, single color molding we're expert at that we have highly motivated it and we have robots and operating 24/7. that item has four, five, six, different colors, requires more touches. we're working 95% of the parts made in the u.s. up from 50% four years ago and
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we'll get to 100% in two or three years. to a business owner, once you make the decision it should be made here for all the reasons i touched on, you look at supply chain and find vendors that can do it. we found vendors that can do it. liz: let's not forget lincoln logs. that is iconic toy every kid should have. you guys make them here in america, hatfield, pennsylvania. the president visited your manufacturing area. one of the things we know all you need is one superhot toy. you have one, that is $30,000 robot that we wanted to show people because it does injectible molding really quickly. >> sure. liz: how do you get that one hot toy that suddenly every kid says i've got to have it? >> you know we call it building worlds kids love. we focus what kids really love. we do the reserve. that's why we launched angry birds last year and mario cart the year before that and why we launch other things that kids are into. we're not at liberty, i will be happy to talk about it with you first, liz. liz: excellent. >> those are kind of things
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we focus on building worlds kids love. when you do that everybody wants it. liz: we will show it proudly for you, michael. please come back to us first on fox business when you're ready to make the announcement. thank you so much. >> sure, liz. great to talk to a real pro. liz: we'll be first in line, right, david? made in america is a great thing. we're not jingoistic but why not. david: did you see the face on the robot? liz: incredible. david: they put a face on the robot. was the bailout of aig, the one done with your tax dollars, was that unconstitutional. that is what aig's former chief says. coming up next, liz macdonald on breaking news about a class-action suit you want to hear about. a frightening scene playing out at a dunkin' donuts. we'll show you more of the video later this hour, thank you. ♪ .
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liz: was the bailout of aig unconstitutional? that's the question heading to the court. david: liz macdonald is here with breaking news on this story. liz, this a story that just won't quit.
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>> hank greenberg and david boies says it is so unconstitutional. breaking news. they more than doubled they want in the amount of damages to u.s. government to 55 billion, way up from 25 billion. they're essentially saying aig was harmed in the rescue. investors were harmed by this rescue. they're saying that they want $32.5 billion back and collateral paid out to settle trades on 100% on the dollar with companies like goldman sachs and calyon and sewtae general. here is david boies bringing suit on behalf of aig. here is what david boies says. >> what the government did in the takeover of aig was to take private assets and use it for public purposes without compensating the owners. >> he is saying that is in violation of the constitution. taking clause, other side of the argument, don't do bailout. go bankrupt. you didn't have rightful access to the fed discount window. you weren't a bank. this is big slug fest.
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the fact they doubled dollar amount is big deal on top of that david boies and hank greenberg are taking fight to the aig board which rejected a move to join the lawsuit. he is putting pressure on aig's board saying to the court we want aig's board named, we want to do it on behalf of the company, this lawsuit, if the aig board still doesn't join the train ride, if they win this suit they can turn around say, look board, you didn't do the right thing by your investors to get a piece of this now $55.5 billion if they win. so that exposes the board to shareholder fighting, or possible suits from the shareholders. this thing is getting ugly. david boies is being like a street fighter with this suit. you can imagine there will be more amended complaints coming down. david: when you heard these companies, aig and american express call themselves banks you knew there would be fall back on that. >> everybody hung out a shingle saying they were a bank, right? liz: thank you, liz on the breaking news from liz macdonald. david: good stuff. what happens when you hit the gas instead of the brakes? your car ends up inside
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dunkin' donuts that story and more and video in 3 1/2 minutes when we go "off the desk". liz: all day friday, it is the business of vice. we're focusing on gambling, alcohol, adult entertainment and so much more with executives from all these areas and a few surprises. wait until you see where i am on friday. find out where there's opportunity to profit. these are multibillion-dollar opportunities, only on fox business friday. david: the crew is very happy about this. ♪ .
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